Purple Group’s profit soars by a staggering 884.1% after it grows its online share trading
CAPE TOWN - PURPLE Group’s profit soared to R15.2 million in the six months to February 28 compared with R900 000 in the same period last year after a near tripling of the EasyEquities online share trading business.
Group revenue increased by 79.5 percent to R100.6m. Attributable profit increased 884.1 percent to R8.3m compared to a profit of R0.8m in the comparative period, the results released Friday showed.
Basic and headline earnings per share increased to 0.85 cents a share compared to 0.09c per share in the prior comparative period.
EasyEquities revenue increased by 197.6 percent to R85m and its taxed profit increased to R22.3m compared to R0.08m in the comparative period.
Platform assets increased by 70.3 percent to R26.9bn and funded retail investment accounts increased 161 percent to R519 816.
“When we updated shareholders this time last year, we titled our feedback ‘Surge towards the tipping point’.
“At the time, despite the many Covid-19 and global economic challenges, we were confident our team and our clients were well positioned to maximise value for themselves and all stakeholders,” directors said.
“We are proud that, a year later, we can report back on major achievements.
“The tipping point may well have been reached, however, we shun complacency and remain laser focused as we continue to deliver with and for our partners and clients,” they said.
The past six months’ performance had highlighted the growth opportunity in the EasyEquities Group.
Volatility remained evident in the GT247.com derivatives trading platform, which was expected and appropriately risk managed.
Although the recent performance of GT247.com was disappointing, it had generated substantial profits over the past few years, and the products and services offered continued to fill a niche gap in the trading landscape of South Africa.
Emperor Asset Management, although a small part of the group currently, has generated a small profit for the six months.
The Emperor team had been awarded a coveted Raging Bull Award in respect of its global equity strategy in the IP Global Momentum Equity Fund.
In the next reporting period, the Emperor team would launch unit trusts on the EasyEquities platform.
EasyProperties was on track to have a property portfolio of over R100m in its first year and the next planned move was in the international property listings.
“We remain committed to continue with the investment revolution – making it possible for anyone to achieve financial freedom and dignity, no matter their background, investment experience or financial resources,” the group said.
The share price fell 7.7 percent to R1.07 on Friday, but the price was well up from 34c a year ago.